according to double entry system of accounting state classification of account and rules of accounting in them ?
Answers
Answer:
Double entry is an accounting term stating that every financial transaction has ... Rules-Based Accounting ... concept underlying present-day bookkeeping and accounting, states that ... Types of Accounts.
Explanation:
Double-entry bookkeeping, in accounting, is a system of book keeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry system has two equal and corresponding sides known as debit and credit. The left-hand side is debit and the right-hand side is credit. In a normally debited account, such as an asset account or an expense account, a debit increases the total quantity of money or financial value, and a credit decreases the amount or value. On the other hand, for an account that is normally credited, such as a liability account or a revenue account, credits increase the account's value and debits decrease that value. In double-entry bookkeeping, a transaction always affects at least two accounts, always includes at least one debit and one credit, and always has total debits and total credits that are equal. This is to keep the accounting equation in balance. For example, if a business takes out a bank loan for $10,000, recording the transaction would require a debit of $10,000 to an asset account called "Cash", as well as a credit of $10,000 to a liability account called "Notes Payable".